Mortgage Interest Deduction on Gifted Home that was financed for first time

[Jlichtenstein1]

I had my house gifted to me.  Then I took a loan on it.  Turbo tax asks:
Let’s get some details about this loan

-This loan is a home equity line of credit (HELOC).

-This loan is a refinance of a previous loan.

-This loan is neither of these.

If i select

         "-This loan is a refinance of a previous loan." it then asks if all the money from the loan went to the house.

In my case it is not a refinance, but I did do a cash out loan.  So if i choose the option

             "-This loan is neither of these."

then all the money is a tax deductible.

Which option should I choose

[KrisD15]

The loan you took would be considered a HELOC Home Equity Line Of Credit.

If the loan was not used to improve the home, the interest would not be claimed as a deduction. 

If a portion was used to improve the house, such as building an addition, you will be asked to enter that amount when going through the interview. 

It is a HELOC because you already owned the house when you took out the loan.